BP loses $6.48B in 2015

The fall in global oil prices has resulted in $6.48 billion loss of BP in 2015 compared with a profit of $3.78 billion in 2014, the company reported on February 2.

In the fourth quarter of last year BP lost $3.3 billion.

BP took $2.6 billion in non-operating post-tax charges in the fourth quarter, primarily related to impairments of Upstream assets as well as restructuring charges for the Group. Including these charges and other offsetting effects, BP reported a replacement cost loss for the fourth quarter of 2015 of $2.2 billion.

The Brent crude oil marker price averaged $44 a barrel in 4Q 2015 compared with $77 a year earlier.

Meanwhile, Bob Dudley, BP group chief executive said the company’s plans set out a clear course for BP for the medium term and will allow to deliver growth in the longer term.

“All of this underpins our commitment to sustaining our dividend and then growing free cash flow and shareholder distributions over the long term,” he said.

BP has taken around $1.5 billion in restructuring charges over the past five quarters; this total is expected to approach $2.5 billion by the end of 2016, according to the report.

BP expects to reduce the number of staff and contractor roles in the Upstream segment by around 4,000 during 2016 and by up to 3,000 from the Downstream by the end of 2017.

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